Object Consulting has been acquired by listed services provider DWS for $4.3 million.
DWS told the ASX on Wednesday evening (pdf) that it’s acquired “Object Consulting’s rights and obligations under current customer contracts, various plant and equipment as well as software products and intellectual property used to provide services to customer contracts.”
Danny Wallis, DWS’ CEO, said "The acquisition of the business and assets of Object Consulting is consistent with DWS Limited’s strategy of diversifying earnings and increases our exposure to State Governments.” DWS is “especially pleased to be able to offer employment to the majority of the Object Consulting employees in what has been an uncertain time for them and to welcome them to the DWS Group,” Wallis added.
DWS told investors it expects the deal to be accretive and that it can fund the deal from cash at hand and its current bank facilities.
Things are moving fast: DWS expects the deal to close by next Wednesday, October 2nd. That speed suggests high confidence the “relevant conditions” of certain key employees joining DWS and software asset acquisitions being completed will be achieved.
The deal specifically mentions Australian Company Number (ACN) 003 682 693. Left unclear is the fate of related entities, “Software Production Company” with its own ACN 090 673 091 and Object Assets Pty Ltd CAN 604 051 685.
Nor is it clear if or how this deal will cover Object Consulting’s debts, which topped $10m and saw administrators suggest it traded insolvent for many months and should be wound up.
And it’s also not brilliant news for Object staff, around a third of whom have already been let go, with more to come. Many still have outstanding pay and superannuation payments to recoup.
But the deal looks decent: as CRN learned when we broke news of the company’s troubles, a swift sale was the hoped-for outcome of Object’s troubles.